News Releases

TORONTO, July 15, 2009 – Beginning August 3, BMO MasterCard will go head to head with American Express and other no-fee credit cards. As part of an ongoing strategy to win a greater share of Canadian AIR MILES Collectors' loyalty, BMO is introducing a new no-fee BMO AIR MILES MasterCard with outstanding reward, convenience and security features. At the same time, BMO has enhanced the benefits of its BMO Gold AIR MILES MasterCard.

The bank announced today that it will simplify and enhance its entire suite of credit card products to deliver lower costs, more rewards and make it easier for customers to choose a credit card that suits their needs.

New No-Fee BMO AIR MILES MasterCard eliminates $35 annual fee; doubles reward miles earned
On August 3, BMO is eliminating its bronze and silver AIR MILES categories, blending them into one no-fee BMO AIR MILES MasterCard that awards 1 AIR MILES reward mile for every $20 spent on the card. This will effectively double the reward miles for more than 1.2 million existing customers and remove the $35 annual fee for another 400,000 customers.

“We've taken a long hard look at what customers want from their credit cards and the findings are, if not surprising, certainly unequivocal,” said Nancy Marescotti, Director, Brand Marketing and Card Management, BMO Bank of Montreal. “Customers want low rates, low fees and simple choices. And if they collect reward miles, they want a card that is accepted virtually everywhere, helps them maximize reward miles for the dollars they spend, and allows them to reach their reward goals as quickly as possible without sacrificing a low interest rate.”

Bigger redemption discounts on BMO Gold AIR MILES MasterCard
The bank will also enhance its BMO Gold AIR MILES MasterCard by boosting the exclusive discount on the number of reward miles required to redeem for any AIR MILES flight from 20 per cent to 25 per cent. For example, if an AIR MILES flight normally requires 2,000 reward miles, BMO Gold AIR MILES cardholders need only 1,500 reward miles. Additionally, highly valued travel protection benefits have been added to the card including car rental collision damage coverage.

“We know that a competitive rewards program helps drive consumers' choice of a credit card,” said Ms. Marescotti. “These enhancements to our Gold AIR MILES MasterCard give our customers a personal shortcut to the trip of their dreams because now they will spend even less to reach their travel destinations and they can also enjoy the peace of mind that automatic insurance coverage provides.“

New BMO Preferred Rate MasterCard – lower than most no-fee cards in market today
To round out the new product line up, beginning in August, BMO will also introduce a lower-interest-rate credit card for those who don't have an interest in reward programs. The BMO Preferred Rate MasterCard will offer a 17.5 per cent annual interest rate and comes with no annual fee. This is one of the lowest interest rates available on a no-fee credit card in the Canadian market today.

BMO MasterCard provides the choice to add a low-interest-rate option
Customers will have the ability to add a Low Interest Rate Option to their BMO AIR MILES MasterCard. BMO MasterCard is the only credit card issuer that provides a premium rewards credit card with a low interest rate option. For an additional $35/year, customers can choose the 11.9 per cent Low Interest Rate option. This is in line with the BMO SmartSteps strategy to help customers do better with their money. “While our competition makes customers choose between rate and reward, BMO lets customers choose the best reward and rate to suit their needs.”

AIR MILES Collectors shopping for the best credit card will appreciate that the BMO AIR MILES MasterCard is accepted at over 30 million locations worldwide, so they can earn AIR MILES reward miles everywhere they shop. The card also provides customers with the added convenience of PayPass “tap and go” technology as well as the security of chip – all at no annual fee.

Earlier in April, the bank provided its credit card customers with more good news by giving them a little extra time to pay their monthly statement. The grace period for all of its customers was extended to 21 days effective on June statements for existing customers and the beginning of August for new customers.

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BACKGROUNDER

Below is an outline of the changes that BMO announced to its suite of BMO MasterCard offerings: